The Top 10 Ten Investing Mistakes We All Make | Cody Garrett | Ep 535
Brad and Cody Garrett from Measure Twice Money dive into the ten most common mistakes that even savvy investors make. They cover essential topics from asset location to maximizing health savings accounts (HSAs), emphasizing a holistic approach to financial wellness.
Key Takeaways:
Understanding the impact of asset location on tax liabilities. Importance of auto reinvestment for maximizing investment growth. Weighing the hassle versus savings in financial decision-making. Strategies for maximizing charitable contributions tax-efficiently. The significance of holistic wellness in financial planning. Timestamps & Key Points:00:01:50 Asset Location
Understanding asset location and its effect on tax liabilities. Choosing the right types of investments for taxable vs. tax-advantaged accounts.00:15:46 Investing Contributions
Importance of logging into your accounts to avoid cash sitting uninvested. Enable auto reinvestment of dividends and capital gains distributions.00:20:29 Return on Hassle
Evaluate whether the savings from switching accounts justify the hassle involved.00:24:14 Charitable Giving
Donate appreciated securities rather than cash to avoid capital gains tax. Utilize donor advised funds for strategic charitable giving.00:33:01 Family Giving
Discuss the timing of financial support for adult children, focusing on "oops money" vs. "ooh money."00:39:23 Maximizing HSA Contributions
Ensure contributions match the latest limits; check both individual and employer contributions.00:41:38 Understanding IRMAA
Awareness of IRMAA’s impact on Medicare premiums and its effects in retirement.00:43:02 Early Retirement Concerns
Don’t let health insurance costs dictate retirement timing; explore ACA options.00:47:25 Retirement Order of Operations
Develop a strategy for tax-optimized withdrawal from investment accounts.00:52:25 Holistic Wellness
Balance financial planning with mental health, relationships, and physical wellness. Action Items: Review asset location to minimize tax liabilities. (Timestamp: 00:01:50) Enable auto reinvestment for dividends in your brokerage account. (Timestamp: 00:17:57) Consider the hassle vs. savings when chasing high-yield accounts. (Timestamp: 00:20:29) Maximize HSA contributions according to the current limits. (Timestamp: 00:39:20) Explore charitable donations via appreciated securities instead of cash. (Timestamp: 00:25:27) Related Resources: Measure Twice Money: measuretwicemoney.com/ChooseFI (Resources related to financial planning) Advice Only Network: adviceonlynetwork.com (Find fee-only financial advisors) Nectarine: hellonectarine.com (Affordable financial advice)
ChooseFI
How would your life change if you reached Financial Independence and got to the point where working is optional? What actions can you take today to make that not just possible but probable. Jonathan & Brad explore the tactics that the FI community uses to reclaim decades of their lives. They discuss reducing expenses, crushing debt, tax optimization, building passive income streams through online businesses and real estate and how to travel the world for free. Every episode is packed with actionable tips and no topic is too big or small as long as it speeds up the process of reaching financial independence.
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